FDI up by 56% in July 2009 – US $ 3.516 billion

  
  
During the month of July, 2009, FDI equity inflows of US $ 3.516 billion (Rs. 170.45 billion) were received. This was as against US $ 2.247 billion (Rs. 96.27 billion), received during the corresponding month of last year (i.e. July, 2008) and US $ 705 billion (Rs. 28.49 billion) received in July, 2007. While speaking to the media persons at a press conference, here today, Shri Anand Sharma, Union Minister of Commerce and Industry, has said that this FDI equity inflows indicates an increase of 56% in US $ terms (and 77% in Rupee terms) over July, 2008 (corresponding month of previous year).

Inflows of US $ 3.516 billion received during the month of July, 2009 are as against US $ 2.582 billion received during the month of June, 2009 and as against US $ 2.096 billion received during the month of May, 2009. It represents an increase of 36% over June, 2009, which, in turn, had represented an increase of 23% over the equity inflows received in May, 2009.

During the interaction, the Minister added that despite the current economic situation, FDI equity inflows amounting to US $ 10.532 billion (Rs. 512.56 billion) have been received during April-July, 2009, which is as against US $ 12.320 (Rs. 514.40 billion) received in April-July, 2008 (corresponding period for last financial year). “The corresponding amount in April, 2007 to July, 2007 was US $ 5.706 billion, compared to which FDI equity inflows during the current financial year have increased by nearly 85%”, he added.

The major sectors receiving FDI equity inflows are: Services sector (US$ 1.86 billion); Housing & Real estate (US$ 1.18 billion); Construction activities (US$ 0.68 billion); Telecommunication (US$ 0.67 billion); and Automobile Industry (US$ 0.27 billion). Mauritius, USA, Cyprus, Japan and Singapore are the major investing countries during the period 2009-10 (April-June 2009). Inflows from Mauritius, USA and Cyprus have been US $ 3.37 billion, 0.81 billion and 0.48 billion respectively, while investments from Japan and Singapore are around US$ 0.47 billion and 0.37 billion respectively.

FDI INFLOWS DURING PREVIOUS FINANCIAL YEARS

• FDI equity inflows have shown a consistently increasing trend since 2004-05.
• FDI equity inflows for 2008-09 surpassed even the previous year’s inflows and reached an unprecedented level of US$ 27.31 billion, which is excluding reinvested earnings. With reinvested earnings and other capital, the FDI inflows for 2008-09 amounted to US$ 35.17 billion.
• FDI equity inflows during 2007-08 at US$ 24.58 billion represented a growth of 56% over the previous year. With reinvested earnings and other capital, the FDI inflows for 2007-08 amounted to US$ 34.36 billion
• The FDI equity inflows during 2006-07 at US$ 15.7 billion were an increase of 184 % over the inflows in the earlier year i.e. 2005-06.
• The FDI equity inflows during 2005-06 at US$ 5.5 billion represented a growth of 72% over inflows for 2004-05.
• The FDI inflows for 2004-05 at US$ 3.2 billion had shown an increase of 45% over that for 2003-04.